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JAMA Comments in Response to the FEOC Request for Public Comment

On January 18, the Japan Automobile Manufacturers Association (JAMA) submitted comments to the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) in response to the December 4, 2023, notice of proposed rulemaking (NPRM) regarding Section 30D Excluded Entities. Below is a summary of those comments.


JAMA members have a shared legacy of over 60 years of operation in the United States and play an important role in the growth and sustained success of the U.S. automobile industry, which significantly contributes to the U.S. economy. In 2022, the most recent year available, nearly 110,000 Americans were directly employed by Japanese-brand automakers in their manufacturing and other operations, e.g. headquarters, research and development/design, and parts distribution centers. JAMA members’ U.S. manufacturing and supporting operations, along with their dealer networks, support 2.29 million private-sector U.S. jobs. Japanese-brand automakers remain among the largest job creators in the U.S.

Additionally, JAMA Members are committed to an electrified and carbon neutral future. Currently, Japanese-brand automakers represent an estimated 50% of all electrified vehicles on U.S. roads, and JAMA members have commitments to bring 100 different electrified models to market by 2030 in order to provide consumers with the electrified vehicle choice that best fits their lifestyle and needs. Japanese-brand automakers’ efforts also extend beyond investments in manufacturing and include the whole electric vehicle (EV) ecosystem, such as charging and battery technologies, battery recycling, infrastructure, and community-based programs to ensure equal access to electrified vehicles. Some of these initiatives, which will come online over the next several years, are outlined in Appendix 1 of the full comments.

As the automotive industry transitions to a more electrified future there are important considerations that policy makers must consider.

  • The Current EV Supply Chain Landscape is Complex – In recent years, the industry has also grappled with supply chain disruptions prompted by the COVID pandemic and shifting geopolitical dynamics. As it currently stands, EV battery supply chains, both upstream and downstream, also remain largely concentrated in one region, which increases risks of vulnerabilities and bottlenecks. In the near future, global demand for critical minerals is also projected to grow significantly, which may create added supply-side pressures. This means that longer timelines are inevitable, particularly in the near term.
  • “Friend-shoring” and Diversification are Drivers of Resilient EV Supply Chains – In terms of EV battery components’ manufacturing, investments are ramping up outside the U.S. including Japan, Canada, and the EU. While added investments by allies and partners to meet global demand for EV batteries are promising, they will also take time to materialize, and global demand for both critical minerals and battery components may outpace supply in the near term. U.S. allies and partners, including Japan, can play a critical role in helping to meet the U.S.’ clean energy transition goals by working together to build both supply chain resilience and boosting the supply of essential critical minerals and battery components.

Points for Clarification

The excluded entity rules even further restrict eligibility for the 30D tax credit, and additional clarity is essential. So, while JAMA and its members appreciate the efforts to provide clarity within this proposed rulemaking, uncertainty remains. As such, JAMA respectfully submits the following points for consideration:

  • Regarding the transitional rule for non-traceable low-value battery materials (and associated constituent materials), clear and timely identification of the eligible materials are beneficial in assisting compliance of these rules. Also, due to the extreme complexity of material processing supply chain, it is unforeseeable that accountable industry standards or systems with precision will be developed in the short term, and therefore consideration should be taken into account for possible extension or perpetuation of the proposed transitional rule (beyond 2027).
  • Further clarification on the administrative procedures and necessary documentation requirements on areas such as FEOC-compliant certification and compliant-battery ledger are highly appreciated.

Click here to read JAMA’s full comment submission.

Visit to learn more about JAMA members’ strong commitment to manufacturing and the American workforce.

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